NDTV denies stake sale to Ajay Singh

Media reports earlier claimed that Singh, co-founder and owner of SpiceJet, had picked up a majority holding in NDTV from promoters Prannoy and Radhika RoyET Bureau | September 23, 2017, 09:18 IST

Amid media reports of a possible takeover of New Delhi Television by SpiceJet’s Ajay Singh, the news broadcaster said it has not entered into any agreement for a stake sale. Sources at NDTV, however, told ET that the two parties had been discussing a deal for some time now, but nothing had been finalised yet.

Media reports earlier claimed that Singh, co-founder and owner of SpiceJet, had picked up a majority holding in NDTV from promoters Prannoy and Radhika Roy. The reports also said Singh would have a controlling stake of around 40% in NDTV and that the Roys would hold around 20%.

Sources who told ET about ongoing talks said it would take some time for any deal to fructify. “Due diligence is on,” a top source in NDTV said. “We have given our financial documents about two weeks back. It’s premature to say the deal is done. Anyway, it will be a complex deal as the government regulations for the news and current affairs broadcasters are pretty stringent.”

As of June 30, promoter holding in NDTV was 61.45% and 38.55% shares were public. In order to take control, Singh will have to pick up a minimum of 51% stake.

Mails sent to NDTV did not elicit any response till filing of this report, while a text message sent to Singh remained unanswered. In a filing with stock exchanges Friday, NDTV said: “We wish to inform you that the promoters of the company have not entered into any agreement for sale of their stake in the company to any person.”